Identity verification, or KYC (Know Your Customer), is a legal requirement for many businesses. It involves collecting supporting documents to confirm the identity and status of clients, whether they are individuals or legal entities. When applied to companies, this process is referred to as KYB (Know Your Business), an extension of KYC specifically designed for corporate clients.

While KYC/KYB compliance is expected from all businesses, it is especially strict in financial sectors such as banking, insurance, fintech, and payment service providers. These industries are more vulnerable to fraud risks and must implement enhanced measures to secure their business relationships.Les documents requis dans le cadre du KYC

The KYC process relies on the collection and analysis of various types of supporting documents, which differ depending on the client’s profile (individual or business). These documents typically fall into three main categories:

• Proof of identity (PoI)
• Proof of address (PoA)
• Proof of income and financial status

In addition to these core documents, additional proof related to professional or personal circumstances (such as family ties or inheritance) may be required, depending on the context or the level of due diligence needed.

Understanding OCR in KYC Processes

In the context of KYC (Know Your Customer), OCR is used to automatically extract key information from official documents such as ID cards, passports, and proof of address. By converting scanned files into usable data, it speeds up identity verification while reducing the risk of human error.

When combined with artificial intelligence, this technology can recognize complex structures, adapt to various document formats, and accurately identify relevant fields such as names, addresses, and document numbers.

IDP (Intelligent Document Processing), which brings together OCR, machine learning, and natural language processing (NLP), takes automation even further. It doesn’t just read documents—it understands, classifies, and structures the data so it can be seamlessly integrated into business workflows or internal systems (like CRMs or compliance tools) via API.

This intelligent, fully automated processing happens in just seconds, with accuracy rates exceeding 95%. It enhances the security of identity checks by detecting anomalies or forgeries, while also minimizing human errors and the need for manual intervention.

Benefits of KYC Automation with OCR and IDP

As digital identity documents become increasingly widespread, automating KYC is becoming a strategic lever for businesses. Integrating OCR and IDP tools offers numerous advantages:

What types of documents are involved?
OCR and IDP solutions can process a wide range of documents commonly required in identity verification procedures:

• National identity cards
• Biometric passports
• Driver’s licenses
• Utility bills (electricity, water, etc.)
• Bank statements
• Payslips
• Tax notices

These documents are scanned, analyzed, and their data extracted with high accuracy—ready to be integrated into risk management, compliance, or customer relationship systems.

The Risks of Poor KYC Management for Your Business

Managing Your KYC with Koncile

In a context of heightened regulatory scrutiny, efficiently managing the KYC process has become a strategic priority.
Koncile offers a comprehensive document automation solution that leverages OCR, natural language processing (NLP), and large language models (LLMs) to streamline the extraction, verification, and utilization of data from KYC documents.

In practical terms, Koncile enables compliance, risk, or back-office teams to:

• Automatically analyze a wide range of documents (ID cards, proof of address, payslips, etc.) within seconds, with high accuracy.
• Extract key data in a customizable way, using extraction models that can be trained or adjusted to fit business needs.
• Detect inconsistencies or document anomalies, helping to identify fraud and secure the verification process.
• Increase operational efficiency through a user-friendly interface, native API integrations, and full traceability of all actions.

Designed for the needs of regulated sectors (banking, insurance, legaltech, real estate, etc.), Koncile transforms a slow, manual, and error-prone KYC process into a streamlined, auditable one that complies with GDPR and AML standards.

By integrating Koncile into their workflows, companies can automate up to 80% of document management tasks, while also improving data quality and team responsiveness.